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USING INTERNAL CONTROLS TO PREVENT ERRORS The following misstatements occurred in the records of ICW Company. For each misstatement, suggest a control to prevent it from happening. 1. A bill from a supplier was paid even though the shipment was not received. 2. A supplier’s bill was paid twice for the same purchase. 3. A plant employee increased his pay rate by entering the computer system using a plant terminal and altering the payroll records. 4. The cash receipts clerk kept a portion of the regular bank deposits for personal use and concealed the theft by manipulating the monthly bank reconciliation she prepared.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 7A, Problem 4SPA
Textbook Problem

USING INTERNAL CONTROLS TO PREVENT ERRORS The following misstatements occurred in the records of ICW Company. For each misstatement, suggest a control to prevent it from happening.

1. A bill from a supplier was paid even though the shipment was not received.

2. A supplier’s bill was paid twice for the same purchase.

3. A plant employee increased his pay rate by entering the computer system using a plant terminal and altering the payroll records.

4. The cash receipts clerk kept a portion of the regular bank deposits for personal use and concealed the theft by manipulating the monthly bank reconciliation she prepared.

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